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The Real Grease Monkey Franchise Cost
With the increasing number of cars and trucks on the road, having a business related to oil changes and preventive maintenance services is always a good choice. And to date, Grease Monkey is one of the best companies to consider. In fact, just by carrying their name, it could automatically bring you business. Let’s talk about the franchise requirements and the estimated Grease Monkey franchise cost. That way, you can already assess if this is the perfect venture for you.
Franchise Description
Grease Monkey started its operations in 1978 and opened its doors for franchising the same year. Their headquarters is located at Greenwood Village, Colorado.
When you franchise Grease Monkey, you may also operate a Monkey Shine car wash. This car wash facility should be located adjacent to the Grease Monkey’s premises.
Franchisee Training
Before the franchisee can start their operations, they must satisfy all the training required by the franchisor. The franchisor will provide the dates, times, and even the location for the training.
The initial classroom training will run for five days, and this will be filled with hands-on exercises. If the franchisor sees the need to add more days to training, the franchisee will have to complete it. Other training such as maintenance, installation, and operation will be held on-site by vendors and manufacturers.
There are also other training programs and certifications which the franchisor might recommend to franchisees and employees. Some are optional, while others are required. It is the discretion of the franchisor if the owner or manager must participate in the training programs.
Generally, the franchisor provides regular seminars and other continuing development programs for its franchisees. This ensures that as a business owner, you are well-informed about industry-updates and technology.
Territory
The franchisor will provide a location for Monkey Grease and Monkey Shine franchise. The franchisees do not have exclusive rights to the designated territory and may face competition with other franchisees and outlets owned by the company.
Franchisee Obligations
The principal owner or main franchisee is not required to participate in the daily operations of Monkey Grease. However, the franchisor highly encourages that they do so. If the franchisee will not be a part of the daily operations, they should designate a manager approved by the franchisor. For franchisees that are a corporation, they must use their center only for the Monkey Grease business. Take note that the franchisees should service all national fleet accounts, and the center must be opened according to what the franchisor will specify.
Term of Agreement
The term of the agreement is 15 years. It could be extended for another 15 years or five years with an automatic extension for five more years. The renewal could happen if the franchisee has met all the standards.
Financial Assistance
The franchisor does not provide financing and does not guarantee a franchisee’s note, lease, or obligation.
Did You Know?
Before jumping into the estimated Grease Monkey franchise cost, check out other interesting information about the company.
Values Time Above Everything Else
What’s good about Grease Monkey is that they will always try to complete a service at the agreed time. If the team could not fulfill their promise, you’d get a buck back for every delayed minute.
300 Centers Globally with 2 Million Customers
There are several Grease Monkey centers around the globe, including Mexico, Saudi Arabia, China, and Colombia. To date, they are known to be the nation’s largest independent franchisor of automotive oil change centers. According to their data, they service around 2 million people every year.
Now, if you are looking for a business that already has a huge following, then Grease Monkey could be the answer.
Majority of Grease Monkey Centers Are Franchised Owned
If you must know, most Grease Monkey centers are owned by franchisees. This essentially means that they have an impeccable support system for franchise owners. They are highly trusted by those who would like to venture into the industry.
Monkey Grease, a Recipient of Several Recognitions and Awards
You can say that a company has credibility and an excellent reputation by the number of awards and recognitions they’ve earned over the years. Grease Monkey did not disappoint. Here are a few awards that they bagged because of their excellent service.
- Ranked #1 In The Quick Lube Category By Entrepreneur 2020 Top Franchise For Veterans For 3 Consecutive Years
- Franchise Business Review Ranked The Grease Monkey Brand In The Top 200 Franchises Of 2020
- Grease Monkey Ranked #161 In The Top 2020 Franchise 500 By Entrepreneur
- Franchise Rankings Ranked Grease Monkey #1 In January 2019 For Best Oil Change Franchises
- Franchise Rankings Ranked Grease Monkey #1 In Best Top Five Oil Change Category In September 2019
Take note that this is just a partial list.
No Experience Required
Grease Monkey does not require their franchisees to have previous experience in the automotive industry. However, they will make sure that you and your team are well-equipped with industry-knowledge with their continuous training programs.
Grease Monkey Franchise Cost
Your Investment
Below is the estimated Grease Monkey franchise cost. This shall give you an idea if you are financially capable of starting the franchisee.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $5,000 | $35,000 |
| Lease, Real Estate and Improvements | $10,000 | $20,000 |
| Center Development Program | $0 | $16,000 |
| Equipment, Furniture, Tools and Installation | $58,195 | $97,350 |
| Grand Opening Costs | $10,000 | $15,000 |
| Initial Inventory | $14,500 | $25,000 |
| Signs | $10,000 | $30,000 |
| Supplies | $1,000 | $2,000 |
| Initial Training – Travel and Lodging Expenses | $1,000 | $5,000 |
| Computer Hardware and Software | $5,000 | $19,500 |
| Prepaid Expenses | $2,000 | $3,000 |
| Additional Funds (3 months) | $40,000 | $80,000 |
| ESTIMATED TOTAL | $156,695 | $347,850 |
Estimated Initial Investment for a Monkey Shine Facility
| Name of Fee | Low | High |
|---|---|---|
| Lease, Real Estate and Improvements | $4,000 | $24,000 |
| Car Wash Equipment and Installation | $104,500 | $371,335 |
| Support Equipment and Tools | $17,250 | $247,200 |
| Initial Inventory | $2,400 | $8,600 |
| Signs | $5,000 | $10,000 |
| Supplies | $500 | $2,000 |
| Additional Funds (3 months) | $18,000 | $98,000 |
| ESTIMATED TOTAL* | $151,650 | $761,135 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty | 5% of gross revenues. |
| Advertising Contribution | 0.5% of gross revenues. |
| Audit Expenses | Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses. |
| Transfer Fee | $5,000 |
| Renewal Fee | $0 to $5,000 |
| Interest | Lesser of 1.5% per month or highest rate of interest allowed by law. |
| Late Charges | $25 |
| Local or Regional Cooperative Advertising | Established by cooperative members. |
| Additional and Training or Assistance Fees | Will vary under circumstances. |
| Noncompliance Service Charge | $1,000 per event of noncompliance, depending on the type of noncompliance. |
| Professional Fees and Expenses | Will vary under circumstances. |
| Indemnification | Will vary under circumstances. |
| Insurance | Reimbursement of the franchisor’s costs, plus a 20% administration charge. |
| Supplier and Product Evaluation Fee | Costs of inspection (estimated to be approximately $100 to $500). |
| Resale Assistance Program | $3,600 |
| Broker Fees | The actual cost of the brokerage commissions, finder’s fees, or similar charges. |
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